Project & Infrastructure Finance
Advice to investors in non-recourse and project finance transactions.
Verdigris assesses the adequacy of risk pass-through to project counterparties, and the residual risk that consequently remains with the investor.
Project finance principles
A structured reference covering counterparty risk pass-through, offtake, EPC and O&M contracts, asset classes, hedging, political risk and the project lifecycle.
Read the referenceProject finance modelling
How Verdigris builds and operationalises project models — layout, periods, debt corkscrews, circular references and portfolio consolidation.
Read the referenceQuantitative work
Exercises in statistical arbitrage and algorithmic trading, undertaken independently of client work.
Read the articlesWhat Verdigris does
Clients are predominantly South African financial institutions investing in energy and infrastructure projects through asset classes including equity, senior and mezzanine debt, and derivative instruments used to hedge project cash flows.
Verdigris provides capital raising advice and financial engineering to non-recourse projects, and has undertaken algorithm development and revenue optimisation for trading clients.
Verdigris also builds lenders' base case models for infrastructure projects seeking funding, and operationalises existing base case models — simplifying them for everyday use and incorporating projects' actual experience as set out in their financial statements.
Selected achievements
- Structured and arranged the first project finance hedge syndication — the sale of a hedge as an asset — to a non-bank in South Africa.
- Advised investors on more than 20 REIPPPP projects with a value of approximately R50 billion, leading to investment of approximately R6 billion.
Who you are dealing with
Verdigris is run by Douglas Lorimer — an actuary (Fellow of the Institute and Faculty of Actuaries), with an MPhil in Finance and Investment, an LLB, and an honours degree in information systems. In practice that means the finance documents, the financial model and the quantitative work are read by one person rather than passed between three.
For a fuller picture, see services or selected experience. To discuss a transaction, please get in touch.